Service revenue declined 5.4% y-o-y to $555.8 million, about 6% below consensus expectations of $592.2 million. Mobile revenue fell 10.1% y-o-y, reflecting weaker high-value roaming, IDD, and value-added services, while the broadband and entertainment segments also declined. Service ebitda dropped 24.7% y-o-y to $85.8 million, with margin compressing to 15.4% from 19.4% a year earlier.
DBS Group Research is reviewing its call and target price for StarHub while Morningstar’s Dan Baker has a “two-star” rating on the telco. The move follows weaker-than-expected 4QFY2025 earnings and disappointing FY2026 guidance.
StarHub reported 4QFY2025 normalised earnings of $12.3 million, down 67.6% year-on-year (y-o-y) and 53.1% quarter-on-quarter (q-o-q), significantly below the consensus estimate of $28.5 million. The shortfall was mainly due to lower service revenue and higher operating costs.
